Liquidity Management and Profitability: A Study of Selected Food and Beverage Companies in Nigeria
Journal Title: International Journal of Management Sciences - Year 2016, Vol 7, Issue 4
Abstract
The study examined the impact of liquidity management on profitability of food and beverage companies in Nigeria. The study involved a sample of five (5) food and beverage companies listed in the Nigerian Stock Exchange. Secondary data were obtained from the annual reports and accounts of the selected companies under study for the period 2011-2015.The relevant data were subjected to analysis using descriptive statistical and multiple regression techniques. The results of the study revealed that Cash Ratio (CARAT) and Quick Ratio (QUIRA) have positive and significant relationship with profitability (ROCE) of companies in the food and beverage sector. It was also empirically verified that Cash Conversion Cycle (CACCY) had negative and insignificant relationship with Profitability (ROCE). The researchers recommended that efficient and effective liquidity management policies and procedures should be put in place in order to improve profitability and reduce the risk of corporate failures.
Authors and Affiliations
Lyndon M. Etale, Paymaster F. Bingilar
Keywords
Related Articles
- EP ID EP27107
- DOI -
- Views 337
- Downloads 5
Study Trends Managers about the Application of Quality Management Application on the Yarmouk Hospital
Health institutions seeking to achieve the planned objectives is based on accurate scientific by relying on managers, doctors and professional staff in retaining well-trained, to achieve the goals set, acceptable and of...
An Empirical Study on the Factors That Affect Employee Motivation and Their Relationship with Job Performance
This paper focuses on the importance of motivating the employees to get superior work behaviors in order to accomplish organization's goals. Motivation is caused in employees through various extrinsic and intrinsic fact...
Financial Ratio Analysis of Firms: A Tool for Decision Making
Financial analysis is a specialty in accounting that aimed at formulating a diagnosis and a prognosis relative to the situation and the financial performance of a company or an organization. This article is to present p...
The Unclaimed Dividends: Implications on the Economic Development of Nigeria
Over the years, unclaimed dividends have continued to increase in Nigeria. The value of unclaimed dividends in 1999 was just N2.09 billion. Between 2002 and 2013, the unclaimed dividend increased from N5.1 billion to N...
The Application of Structural Equation Models in Industry: Tendencies
Modeling the cause and effect is traditionally solved using some regression technique when the independent and dependent variables are continuous or measurable. Often, however, the variables are constructs or dimension...